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Issues:
1. Allowance of investment under section 32A of the IT Act to the assessee. 2. Entitlement to investment allowance on plant and machinery used for business purposes. 3. Appeal against the levy of interest under section 217 for the assessment year 1984-85. Detailed Analysis: 1. The appeals by the Revenue challenged the orders of the CIT(A) allowing investment allowance under section 32A of the IT Act to the assessee for the assessment years 1982-83, 1984-85, and 1985-86. The assessee, a Company engaged in plant erection and fabrication, claimed investment allowance on plant and machinery used for its business. The ITO disallowed the claim, stating that the machinery was not used for the business as required by section 32A(2)(b)(iii). The CIT(A) allowed the claim based on the Tribunal's decision in a similar case. The Revenue contended that the assessee did not engage in manufacturing or production as required by section 32A, citing relevant case laws. The assessee argued that its activities involved manufacturing steel structures essential for its business, relying on Tribunal decisions supporting its claim. 2. The Tribunal considered the activities of the assessee, which included fabricating steel structures essential for erecting thermal stations and steel plants. The question was whether these activities constituted production or manufacture of an article or thing under section 32A. The Tribunal distinguished a previous case where the Delhi High Court held that manufacturing doors and windows during building construction did not qualify for investment allowance. In the present case, the fabrication of steel structures was integral to the assessee's main business, unlike the incidental activities in the previous case. Another case cited by the Revenue was also found to be in favor of the assessee, as it supported activities contributing to the main business. Relying on previous Tribunal decisions, the Tribunal concluded that the fabrication of steel structures by the assessee qualified as production under section 32A, entitling the assessee to investment allowance. 3. For the assessment year 1984-85, an additional ground of appeal was raised regarding the levy of interest under section 217. The assessee, not previously assessed through regular assessment, estimated its income and contended that no interest was leviable under section 217. The CIT(A) canceled the interest levied by the ITO, leading to the Revenue's appeal. The Revenue argued that no appeal could be made against an order under section 217, while the assessee supported the CIT(A)'s decision. The Tribunal found that since the assessee submitted an advance tax estimate, the question of levying interest under section 217 did not arise. Despite the technicality that no appeal lies against a section 217 order, the Tribunal justified the CIT(A)'s jurisdiction due to the fundamental issue of the assessee's liability under the Act. Considering the tax deductions and investment allowance claimed by the assessee, the Tribunal concluded that no interest was payable under section 217, leading to the dismissal of the appeal against the CIT(A)'s decision on interest levy.
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